USD/CAD intraday technical levels and trading recommendations for January 22, 2014 2014-01-22 1390391285_cadweek.jpg This week, the bulls managed to reach new price levels (around 1.1000) that havent been reached since September 2009. This bullish momentum is purely fundamental-induced due to the positive data from the United States. Yesterday, Fed watcher Jon Hilsenrath comments about the probability to reduce further monetary easing in the next week applied further bullish pressure on the pair. However, the USD failed to keep its gains against the CAD as the USD/CAD pair was pushed again below 1.0975 by the end of the day. The next prominent resistance level is located around 1.1230 corresponding to 50% Fibonacci Level of the bearish movement extending between March 2009 and July 2011. Temporary resistance is located at the price level of 1.1000 as it corresponds to the upper limit of the depicted bullish channel. The USD/CAD pair has a prominent support zone at 1.0700-1.0750 which represents the upper limit of consolidation range that got broken this month. Any further testing of this zone will provide a valid BUY entry for the mid-term. cad4hh.jpg The 4H chart reveals the obvious bearish rejection (bearish engulfing candlestick) which was expressed Yesterday in reaction to price level of 1.1000. The short-term view seems to be negative as long as the pair is consolidating below 1.0975. Today, the bears need to breakdown the next uptrend line that comes to meet the pair around 1.0950. Breakdown of this uptrend line will probably open the way for a corrective movement towards 1.0900 then 1.0860. Otherwise, the long-term bullish scenario mentioned above would be intact. GBP/USD intraday technical levels and trading recommendations for January 22, 2014 2014-01-22 gbpdaily.jpg GBP/USD has been moving within a wide-ranged price zone extending between 1.5900 and 1.6250 until November 27 when a bullish breakout took place. Since this breakout, the bulls have been defending 1.6250 as a prominent support for them. Further successful retesting took place on mid of December that pushed the pair again to the upside. The daily chart shows recent bearish rejection at the upper limit of the ongoing channel around 1.6590 (on January 2). This pushed the pair towards 1.6310 where another bullish impulse was initiated. Based on the mentioned bullish breakout, the GBP/USD pair has a projection target located around 1.6630. Any BUY positions should be closed there. In the long -term, there is a prominent WEEKLY resistance located around 1.6740. Daily fixation above 1.6600-1.6630 will probably open the way towards it. However, we should notice price action at 1.6630 initially as bearish rejection may take place off there.
Posted on: Wed, 22 Jan 2014 15:57:07 +0000
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